PhysicsWallah files updated papers for Rs 3,820 crore IPO, Alakh Pandey, Prateek Maheshwari to pare stake – The Economic Times

Edtech unicorn PhysicsWallah (PW) has filed its updated draft red herring prospectus (UDRHP) with Sebi, aiming to raise Rs 3,820 crore through a mix of fresh issue (Rs 3,100 crore) and an offer-for-sale by its cofounders Alakh Pandey and Prateek Maheshwari (Rs 3,600 crore each).

Founded in 2016 as a YouTube channel and incorporated in 2020, the Noida-based company has expanded into a full-stack education platform spanning online classes, offline centers, test prep and skilling. Its operating revenue grew at a 97% CAGR between FY23 and FY25, while offline presence scaled sharply with a 166% CAGR in centers over the same period.

The company’s growth has been backed by acquisitions, including Utkarsh Classes and Xylem Learning, as it sought to consolidate share in India’s large test-prep market. According to its UDRHP, PW’s unique transacting users online grew at a 56.8% CAGR between FY23 and FY25.

Pandey and Maheshwari will dilute part of their stakes in the IPO. Their average cost of acquisition is negligible due to stock splits and bonus issues over the years .

PhysicsWallah will be the first Indian edtech to hit the public markets after a few years of the sector going through a reset amid the fall of its biggest player Byju’s.